Tenants fee act summary - BingoLoans

Letting Fees Banned in the UK

The Tenants fee act has been introduced by the government. Follow this link to see how what the government’s approach is to banning letting fees paid by tenants in the private rented sector.

Charges that could have added around £800 to the cost of renting a new home have finally been banned. After three years, renters across England have breathed a sigh of relief as the new ban on letting agent fees has come into effect.

What Charges Have Been Banned?

There are a number of different fees that have been banned with this new law. Included in those that are banned are:

– Any admin fees;
– Credit check fees;
– Extra charges for animals;
– Viewing fees;
– Check in and check out fees;
– Charges for professional cleaning;
– Fees for weekend moves.

These charges when added together had some first-time renters faced with around £800 worth of up front fees when renting a property. As well as banning certain fees imposed by letting agencies and landlords, the new law also only allows up to five weeks’ rent as a deposit for a rental property.

What Payments Can Still Be Charged?

Now that we know what an agent or landlord can’t charge for a rental property, it’s important to know what you can still be charged for. The only payments a landlord or agent can charge a tenant are:

– A deposit that is completely refundable, capped at five weeks’ rent or six weeks if the annual rent is over £50,000.

– A holding deposit that is also refundable to reserve the property, with a cap of one week’s rent.

– Payments for a change in agreement such as amending names on a contract. This is capped at £50, with an allowance for reasonable costs as long as evidence can be provided such as invoices or receipts.

– Early termination fees if a tenant wants to move before their agreements comes to an end. This charge is capped at any loss the landlord or agent will incur from rental losses.

– Default fees for late rental payments or replacing keys that have been lost.

This new ban will not only save tenants a lot of money when moving to a rental property, but it also allows them to have more power within their rights. Landlords will have to think twice before charging higher rent prices for repairs and fees, as a tenant can now threaten to move with credibility if this new law is broken in any way.

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